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Take home pay set to rise, minimum wage earners benefit most

December 14, 2023
Photo: Depositphotos.com

Most workers will have more money to spend next year, when changes to taxes and other premiums come into effect, according to research by salary processor ADP.

For someone earning almost €3,400 gross per month, the modal salary according to ADP, will be some €79 a month better off from January. Those earning just under €7,000 a month gross will have €76 a month more in disposable income.

The biggest impact of the changes will be felt by people working 40 hours a week for the minimum wage. Their net income will rise by €267 a month, ADP said. This is mainly due to the increase in the basic minimum wage which will come into effect in January.

The ADP’s calculations do not involve pension premiums and top-up health insurance policies, or incremental rises.

The increase in take home pay does not mean automatically that spending power will grow in 2024, spokesman Dik van Leeuwerden told broadcaster NOS. “You also need to look at health insurance, supermarket prices and the increase in local taxes,” he said. “And we have not taken those into account.”

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